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Home / New Zealand / Politics

UN looking down the barrel of bankruptcy - with the US still yet to pay its dues

Claudia O'Neill
Claudia O'Neill
Multimedia Journalist, Newstalk ZB·Newstalk ZB·
23 Dec, 2025 04:00 PM4 mins to read

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Morning Headlines | Plea for calm on last day of Christmas shopping and some meat prices up 25% within a year | Wednesday, December 24, 2025

The Foreign Minister wants all United Nations members paying their dues, as a looming funding crisis threatens to undermine international relations and development efforts.

UN Secretary-General António Guterres revealed the organisation is looking to end the year with arrears of more than $2.7 billion, potentially forcing a 15.1% reduction in next year’s regular budget.

The proposed 2026 budget is set at $5.579 billion, down $994 million compared with 2025.

That would see staff numbers reduced by 18.8% and special political missions cut by more than 21%.

Guterres warned the deficit could have serious implications through to 2027.

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Winston Peters addresses the UN General Assembly on September 27, 2025. Photo / United Nations
Winston Peters addresses the UN General Assembly on September 27, 2025. Photo / United Nations

The United States, which was responsible for 22% of the 2025 Budget, is the largest Member State yet to provide this funding - which was due in February.

Its contributions to the UN have previously made up a significant portion of international aid globally.

The US has also cut its own humanitarian aid budget by more than 80%.

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Foreign Minister Winston Peters meets UN Secretary-General Antonio Guterres in September 2025. Photo / UN
Foreign Minister Winston Peters meets UN Secretary-General Antonio Guterres in September 2025. Photo / UN

Foreign Minister Winston Peters said New Zealand, along with the likes of Australia and Canada, consistently calls on all members of the UN to pay their assessed contributions in full and on time.

“At a time when the UN is facing a challenging funding environment, we reiterate this call and acknowledge that Secretary-General Guterres is considering a range of measures to deal with the immediate and pressing funding issues facing the UN.”

Peters said necessary and meaningful UN reform is long overdue.

He said for some time, the UN has not been meeting the needs of its members, leaving it vulnerable to outright repudiation by some, and ambivalence by others.

“We believe that bold reforms are required to make the UN and its institutions more responsive, efficient, and effective.”

Former Foreign Affairs Minister and diplomat Phil Goff said when the world’s wealthiest and most powerful country decides not to contribute to the UN and pay the money it owes, it creates a carte blanche for other countries to do likewise.

“It clearly sets a bad example because the United States is such a predominant economic and military power in the world,” he said.

Former foreign minister Phil Goff. Photo / Cameron Pitney
Former foreign minister Phil Goff. Photo / Cameron Pitney

Goff said by withholding support for the UN, the US could weaken the organisation and the work we expect it to do in confronting international crises.

“That is now having a direct and brutal impact on the poorest people in the world, the sickest people in the world, and those that have been made refugees by international and local conflicts.”

Otago University professor of international relations Robert Patman said the instability is ironic as the world has never needed a more effective UN.

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He said transnational terrorism, climate change, and pandemics are all problems that don’t respect borders and can’t be fixed by countries acting unilaterally.

“In a sense, the UN has never been more necessary, but it’s never been weaker because a number of countries have used the UN as a bit of a political punchbag.”

Associate Professor Robert Patman of the University of Otago. Photo / Supplied
Associate Professor Robert Patman of the University of Otago. Photo / Supplied

Meanwhile, Patman said the US disproportionately benefits from being part of the UN, as one of just five countries granted exclusive veto rights to block any resolution it doesn’t like, by way of the UN Security Council.

“If they’re going to have such perks, they should at least pay their fair share,” he said.

Patman said the UN is at a crossroads and it’s up to the likes of New Zealand, Australia, Canada and the EU countries to make it clear where they stand and be more robust about how the most powerful countries in the world are not pulling their weight.

“The UN is only as strong or as weak as its member states want it to be,” he said.

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“At the very least what should happen is members of the Permanent Five should be asked to publicly justify why they need the veto, and no other member has it.”

The final approval of the UN budget is expected by the end of the month.

Claudia O’Neill is an Auckland-based multimedia journalist with interests in science, health and geopolitics. She holds a Bachelor of Science degree from the University of Auckland and a Postgraduate Diploma in Journalism (Distinction) from Massey University. She joined NZME in 2023.

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